Hot on the heels of cryptocurrency, NFTs have become the latest tech trend that has generally altered both online transactions and casinos. It’s early days, but here’s how things stand with the benefits of NFT integration at online casinos.
The Rise of NFTs
NFTs (non-fungible tokens) did not even exist a few years ago but have become a massive business recently. This has revolutionized the art world, with billions upon billions spent on virtual NFT artworks. In addition to that, it has bolstered the Ethereum cryptocurrency (the second most popular in the world after Bitcoin), which is the backbone of NFT transactions.
While the artwork is still what people think of first and foremost when considering NFTs, they have expanded to include virtual items in the metaverse (from real estate to fashion), video games, and casino gaming. And just as people often use crypto for trading purposes, so many also buy and sell NFTs as a business.
NFT and Crypto Similarities
The rise of NFTs follows the ascendance of cryptocurrency. Bitcoin is the leading coin for most activities, and Ethereum is rising in value thanks to its critical importance to NFT transactions. Both NFTs and cryptocurrencies make use of the recent breakthrough in blockchain technology to help ensure robust security.
NFT and Crypto Application in Different Industries
Many industries have adapted to this trend. The first thing that everybody thinks of is digital art collectibles. The most common way to show off your riches is to use your art collectibles as a profile picture on social media. Real estate and supply chain logistics have also embraced this trend. However, gaming is the second industry that comes to mind when discussing NFT. Even though players could sell their skins for profit, they still didn’t have any real sense of ownership. NFT’s changed the game.
The iGaming Industry and online casinos have always been keen to get in on the latest technological acts, as the marketplace is competitive. Failure to adapt to new circumstances can see sites getting left behind. Because of this, cryptocurrencies have gone from being a rarely supported banking method to being increasingly widespread in the online betting world. Some sites offer multiple coins (Litecoin and Doge are common alternatives to Bitcoin). Crypto fans have more and more online casinos from which to pick, and Jax Casino is one such brand. Just as cryptocurrencies are often available at online casinos, there’s much speculation that NFTs will go from being a rare additional feature to a frequently supported technology.
The Advantages of NFTs
One major advantage that betting with NFTs has over both crypto betting and using traditional fiat currencies is that their programmable nature means games can be provably fair. This is, of course, the case already at reputable casinos, but anything that can provide greater reassurance and clarity is a good thing for players.
This same flexibility means that an NFT can act as a gate pass for a casino or as a playing ticket for all casinos under a particular brand. Casino games designed from the ground up to revolve around NFTs are still very much in their nascent form. They are likely to be developed most rapidly in the metaverse. NFTs and crypto are at the heart of the financial system, unlike the regular internet, where they are supported but secondarily compared to more traditional methods of personal finance.
Casinos could offer rewards in the form of NFTs, which combine a unique piece of art or wearable with a versatile utility. For example, a player who has been with a casino for X years or wagered Y amount might get access to tournaments for free. NFTs are becoming so desired that some people are choosing them over physical works of art, such as when Damien Hirst offered buyers the choice.
Differences Between Crypto and NFT Betting
Cryptocurrency is inherently different to fiat currency, as it does not belong to a single nation, and its volatility is substantially greater. The exchange rate is the most lucrative or costly gamble that might be made with crypto. However, it is, by and large, akin to traditional currency in that demand drives the price up or down, and, short of catastrophe, the price will never be effectively zero (for major currencies, this can happen with minor ones).
NFTs also have value, which can vary massively according to market sentiment. NFTs can also have another dimension aside from tradable commodities because they can be artwork, real estate, or wearables. NFTs are one-off items, whereas one specific crypto coin has the same value as any other of the same denomination. Numismatic enthusiasts might note this makes them less distinct than some special edition real-world coins, such as the Kew Gardens 50 pence piece, which can sell for two hundred times its face value due to scarcity).
Online casinos have continually updated their offering with the advent of smartphones, live streaming, cryptocurrency, and NFTs. This aspect of online betting is likely to grow even more in the coming years.
